There is no worse investment than that of which you cannot make up for the mistake. In other words, you will never get your purchase prices back. Or at least for many years, excessive for your interests like small and medium investor. Luckily for you, this is not a very common practice in today's equities. But still there are many cases where you can stay hooked in their quotes. Or what is the same, very far from the original prices. To the point that you are forced to make terrible sales.
One of the main problems that you can find in investing in the stock market is that they do not give you a second chance at opening positions in the financial markets. Especially, because it will be one of the sources that promote that you can lose significant amounts of money in your stock operations. Much more than you can initially imagine and that you will have no choice but to correct this serious incident. That on the other hand can happen to you at any time and situation. Even from these precise moments.
To prevent this problem from appearing, nothing better than some simple recipes that you should apply when you are going to open positions in equities. Not surprisingly, it will be a very effective strategy for protect your money of the least favorable scenarios for your personal interests. Because in effect, you will be able to better optimize operations and channel them under the most correct approaches in your investment. It will be one of the goals that you should set yourself from now on.
Second chance: is it necessary?
Surely on more than one occasion you have lamented about the investment made a few days after formalizing the purchase operation. Well, there are a series of values, that although you can lose money in the price at the beginning, the normal thing is that in the medium and long term you leave the positions in positive territory. That is, you get capital gains in one or another intensity. As long as you close the positions and clear the loss accounting, which in some cases can be more than important.
For you to have a second chance in equities, you must meet a series of requirements that must be very well defined. First of all, don't get gripped by nerves. Sales panic should not be a common denominator in your actions. Another feature of your profile is your investments must be directed to the medium and long term. It is the best antidote to avoid being harmed by any of your performances. To do this, you will have no choice but to invest that money that you will not need for a long time. And that does not affect the liquidity of your checking account.
If you meet these requirements, the financial markets will surely offer you a second and maybe even a third opportunity in your investments. In particular, in the securities with the largest capitalization and that are part of the most important indices of equities. Because in effect, it will be very important that you select the securities of your investment portfolio if you want to meet these objectives from now on. And do not leave many euros on the way.
Proposals to rectify
In the national stock market you have a series of values that sooner or later will give you joy. Although at the moment you lose money with them. Emphasizing the advice of many financial analysts that money is never lost in the stock market in the long run. Not surprisingly, this is one of your main objectives and by which your investments have to be guided from the beginning. Keep calm in the most unfavorable scenarios for your interests. Where the prices of the shares fall continuously for various reasons.
In this sense, there are some proposals that you will certainly not regret if you choose to make purchases from now on. One of these suggestions comes from Inditex textile. It is what is called a piggy bank value that increases the price of its shares year after year. Virtually non-stop and on a regular basis. Due to the good health of its business model, with increasingly positive and rapidly expanding business results. Although at a given moment the investment turns out badly, the normal thing is that after a more or less reasonable period of time you will earn money.
Another of the clearest bets you have in the financial markets is that of the construction company Ferrovial. With a case very similar to that of the company chaired by Amancio Ortega. Things have to get very bad for you so that you do not end operations with capital gains. Although at some point you will have no choice but to remain calm. And of course to be firm in your decisions. The experience of its investors has to serve as an incentive for you to undertake the opening of positions in the value.
Within this selection of securities, a classic such as Telefónica cannot be absent from the national stock market. Although with a more nuanced strategy, it is usually a winning company in the medium and especially long term. Where you can afford the odd slip in your price. Especially because it will give you the much desired second chance. So that you can amend possible purchases that have not developed as you wanted from the beginning. With the incentive that you will have a guaranteed dividend every year with an average interest close to 8%. More than through traditional fixed income.
Other values that will never fail
The list of these financial assets is extended to other securities that provide greater security at the time of formalizing and forming the investment portfolio. This is the specific case of the values of the hotel sector, with Sol Meliá and NH Hotels to the head. Through a recurring line of business that never fails small and medium investors. Especially when the results of tourism activity have never disappointed investors in their expectations. It is not surprising, therefore, that at least after a few years you see how your positions have increased. Hopefully even improving the average of Spanish equities.
Nor can you leave in the ink classic cut values such as those from the motorways. All a guarantee on how your investments will go in the coming years. Beyond that they can be affected by very deep corrections in the quotation of their prices or even under a downward trend of great draft and that can last longer than desired. You must also include in this original list the actions of a financial group (banks, insurance companies, etc.) well managed and that in the long run they will give you more than one joy in their quotes. In addition, with the distribution of dividends among its shareholders.
Of course, if some values that cannot be lacking in the medium and long term, those are electrical. It is the safest bet on what we are talking about. Their businesses always go well and although they do not point to really spectacular revaluations, after a few years you will pay off the operations with benefits. Whatever bet you make. Because they also have a wide range of companies with these characteristics. To the point where you will have more than one problem for your choice. It is precisely a very wise decision for the longest periods of your stay.
Not get caught
Not in vain, your actions must be directed so that you do not get hooked on the open positions in the stock market. Avoiding situations that are certainly detrimental to your interests that you should avoid under any circumstances. After all, it is your own money that you are gambling on the trading floors. To do this, you must prevent your share price from being very far from the purchase levels. Something that in second row values or more speculative is a more than dangerous situation.
You run the serious risk that the purchase price of the shares will never be recovered. With which, you will have no choice but to settle the operations with terrible sales. Or failing that, expect an unforeseeable corporate event occurs that causes a radical change in its price. In this sense, it is like waiting for a miracle to happen, a process that many small and medium investors have gone through, as in your case.
In any case, and to avoid the appearance of these scenarios so dangerous for your interests, you have a strategy to limit the losses of your movements in equities. Nothing is as easy as through a sell order called a stop loss. So that in this way, can you cut the handicaps. It will give you the opportunity to assume only those that can support the balance of your checking account. Being a very practical operation especially in the bearish processes of the stock market.
But with everything, there will be many more possibilities that they have to have, as in their own life, a second chance that allows you to correct the mistakes made through the selection of values that make up your investment portfolio. You will have achieved something through this very useful strategy to defend your interests as an investor.